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INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION
2014

Name Dayna Rusk
NetID Drus426
Group Number: 232
Website Link: http://infosys1102014s1group232.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kit – Wah Huang Wednesday 12pm
Time Spent on
Assignment:
23 hours Word Count: 1609

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INNOVATION IN THE MARKET OF
AUTOMOTIVE SAFTEY
INTRODUCTION
With drink driving becoming more and more of an issue in our society every day, a new and
innovative solution is long overdue. With this in mind, we have come up with a product
which will tackle the problem head on, and put a stop to drink driving in our community
once and for all. With the installation of transdermal blood alcohol testing (through the skin
of your palms) equipment in the steering wheel of your car, your blood alcohol levels will be
measured by a micro computer also installed in your vehicle. If your blood alcohol reading is
above the national limit, your car will simply not start.
3. BUSINESS SECTION
3.1 Vision
‘Providing innovative technological solutions that ensure the saftey of drivers worldwide
and using these solutions to build a stronger society together’
3.2 Industry Analysis: Automotive Saftey Industry
Industry: Automotive Safety Industry: technological ideas and solutions that aim to increase
the safety of motor vehicles
Force: High/Low: Justification:
Buyer power: Low Buyer power is low as there are very few choices
for customers, due to the high standard of quality
required by associations such as the NHTSA
(National Highway Traffic Saftey Association) in
order for such solutions to be employed. (Tuan
Nguyen, 2011)

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Supplier power: Low Although technoliges such as these are few within
the market, supplier power is low because
products are required to be relatively inexpensive
in order to be able to be acceptable for use
among the general public. (DADDS, 2014)
Threat of new entrants: Low The threat of new entrants into this market is
very low as there are high barriers to entry in
place, the enormous set up costs invovled with
the research and development nessecary to set
up these products, and the ongoing costs
invloved with running the product/ updating it as
safety regulations change.(Talay, M. Berk,
Calantone, Roger J. Voorhees, Clay M. 2014)
Threat of substitutes: High Because there are few similar products in the
market, the threat of substitutes is relatively low.
The products in this market are all very unique
and there is not common shared knowledge
about development of the products.
Rivalry among existing
competitors:
High Rivalry among existing competitors is high as the
competition is fierce, so competitors are
constantly in search of new information that will
give them a competititve advantage. (Toyota,
2007).
Overall attractiveness of the industry: Overall, the industry is not very attractive. This is due
to the combination of high set up costs/ barriers to entry and the low supplier power.
3.3 Customers and Thei r Needs
The target customers for this product are car companies who will purchase the technology
to install as a component into the vehicles they manufacture.

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In order for this product to satisfy the customers needs, it must be complete and 100%
reliable (it has to be fully operational and compatible,) readily available in bulk as the
average order will be very large, reasonably inexpensive, as non-intruisive as possible so as
not to intrude on peoples freedom and to be convenient as well as easy to operate for the
end user (the driver of the car) (DADDS,2014)
3.4 The Product and Service
Price control in the market is controlled by the government because it is essential to the
health and saftey of everyone, therefore the product is inexpensive. Millions of dollars are
invested in research and development of the system, so it is fully functional and
guarnanteed to work perfectly every time. As a part of this, the design process has
sucessfully prodcued and end product which is non intrusive to the driver, and will not
hinder their driving so they can go about it as usual, because the reading of the alcohol
blood level is done very quick so a result will be determined within seconds. These factors
ensure that the product is more than capable of meeting the needs of the customer.
3.5 Suppliers and Partners
An example of a supplier could be ‘Denso’ a company who wholesale car parts that go into
the maufacturing process. They might supply us with the microcomputer component of our
system. Another example of a supplier might be ‘TruTouch Technologies’ who would supply
us with the transdermal sensors to be installed in the steering wheel. An example of a
partner for us might be the Land Transport Agency here in New Zealand, who are concerned
with road saftey and would therefore be willing to enter Into a partnership with us. Another
example of a partner could be the HPA or Health Promotion Agency in relation to alcohol, as
they would benefit from our research and could help us to fund ours.
3.6 Strategy: Focused Low Cost
Due to the government regulation in the interst of road saftey, our product is of low cost
within the market to our customers.
Because the product is designed specifically for motor vehicles and motor vehicles only it is
directed at a very narrow market.

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The overall strategy is therefore Focused low cost.
3.7 Value Chain Activity: Technology and development (R&D)
The most important value chain activity for this business is Technology and
development/research and development
In order for us to stay competititive and successful, we must continuously run research to
keep up with advances in science and technology and use this information to develop our
product to better suit the needs of our customers and fufill the purpose of the product in
effectively reducing drink driving. This is a key value chain activity for our business because
it allows for a consistently innovative product that is suited to the needs of customers and
therefore heavily supports our vision and strategy.
3.8 Business Processes
3.8.1. RESEARCH ANALYSI S PROCESS – in order for our business to be able to consistently
provide a product which is innovative and efficient, business facing processes such as
research must be a part of our day to day activities as this is how we will keep our product
technologicaly advanced and competitive.

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Start
Gather raw data
Data is transformed
into information
Information is used
to provide feedback
Product is improved
Product is marketed
END
Research
Product development
Sales
Data warehousing system


3.8.2. SALES/CUSTOMER SERVICE PROCESS- As we do not have a particularly large customer
base, it is vital to the success of our business that we completely satisfy customers, and
provide them with a product they are 100% happy withi in terms of all the factors
mentioned above with regards to our customers needs.

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START
Receive order
Warehouse/operations
Produce goods
Send order to
customer
Receive feedback
END
Customer communications system
Manufacturing
Research & Development

3.9 Functionalities
3.9.1. RESEARCH ANALYSI S PROCESS
 Store and process raw data for transformation into useful information
 Information provided is used to improve product
3.9.2. SALES/CUSTOMER SERVICE PROCESS
 Goods are produced in a timely fashion when order is received
 Communication is established with the customer after the sale is complete to
get feedback
3.10 Systems


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3.10. 1. DATA STORAGE AND PROCESSING SYSTEM – a form of data warehousing system is
used to record the data that is extracted from the researching prcoess, to store this data
into relevant categories, and to process it so that it is transformed into information that can
be used to make decsions about the product. We will be able to efficiently process data and
information about our product in order to improve it and to be able to supply our customer
with a product that is innovative as promised.
3.10. 2. CUSTOMER COMMUNICATONS SYSTEM – this will aid both the business and the
customer in the sale of the product. The customer is able to make complaints make
enquires, provide praise, or just share their experiences. The information provided from this
system will then be recorded as it is very useful to us when it comes to improving both our
product and our customer service and means we are able to stay competitive within the
market. Customers are happy, and we can work in colaboration with them, as well as with
society in order to make it a safer place.
3.10.3. INVENTORY MANAGEMENT SYSTEM- an inventory management system
will effectively support the ordering of goods both by us and by our customers
for our product, so that the customers will receive their goods when they need
them, and we will be able to keep track of how much stock we have and when
we need to order more. This system will ensure that customers not only get their
goods on time, but that we are able to provide our product in the quantity they
require. This is key as it will determine whether or not we are able to keep
providing our product to the customer exactly how they want/need it.

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3.11. Summary Table: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Technology
and
development
(R&D)
Research
analysis
process

Store and process raw data for
transformation into useful information
Information provided is used to improve
product



Data storage and
procsessing system

Executive
Information
Sysytems (EIS)

Decision Support
System (DSS)
Sales/Customer
Service process
Goods are produced in a timely fashion
when order is received


Communication is established with the
customer after the sale is complete to
get feedback


Inventory management
system

Customer
communications system
Transaction
processing system
(TPS)

Customer relationship
management (CRM)
system






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CONCLUSION
With the implementation of transdermal sensors into vehicles in order to measure alcohol
blood levels, we can finally prevent intoxicated drivers from getting on our roads and for us
this means a safer society. The use of informations systems guarntees that we are able to
strategically manage, coordinate and control our business and product. They deliver value
by supporting business functions at all levels, making our business more
efficient/productive, and competitive within our market. They also see that we are able to
meet our customers needs, and therefore they enable us to work towards our vision in
making our society a better place by making our roads safer.
REFERENCES

1. Nguyen. T (2011.). ‘new car technology can stop drunks from driving’ Retrieved
from http://www.smartplanet.com/blog/thinking-tech/new-car-technology-can-
stop-drunks-from-driving/

2. Driver Alcohol Detection System For Saftey Website. (Home Page) Retrieved from
http://www.dadss.org/find-out-more?type=All&upload_fid=1

3. Talay, M. Berk, Calantone, Roger J. Voorhees, Clay M. (2014). Coevolutionary
Dynamics of Automotive Competition: Product Innovation, Change, and
Marketplace Survival. Journal of Production Innovation Management, volume 31
(1), page Retrieved from
http://web.a.ebscohost.com.ezproxy.auckland.ac.nz/ehost/detail?vid=15&sid=d864
6530-8a7a-46c0-a9df-
491b2a2d407b%40sessionmgr4004&hid=4204&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZ
zY29wZT1zaXRl#db=buh&AN=92941938

4. Toyota Motor Annual Report. (2007). (Excerpt) Retreived from
http://www.wikinvest.com/stock/Toyota_Motor_(TM)/Worldwide_Automobile_Mar
ket_Highly_Competitive